COASTAL CONSERVANCY Staff Recommendation October 18, 2012 MOUNT MADONNA COUNTY PARK AREA PROPERTY ACQUISITION Project No. 12-033-01 Project Manager: Jeff Melby RECOMMENDED ACTION: Authorization to disburse up to $750,000 to the Peninsula Open Space Trust for acquisition of the 490-acre Mount Madonna County Park Area property in Santa Clara County. LOCATION: West of the City of Gilroy and adjacent to Mount Madonna County Park in unincorporated Santa Clara County. PROGRAM CATEGORY: San Francisco Bay Area Conservancy EXHIBITS Exhibit 1: Project Location and Site Maps Exhibit 2: Project Photographs Exhibit 3: Conservation Lands Network Analysis Exhibit 4: Project Letters RESOLUTION AND FINDINGS: Staff recommends that the State Coastal Conservancy adopt the following resolution pursuant to Sections 31160-31165 of the Public Resources Code: “The State Coastal Conservancy hereby authorizes the disbursement of up to $750,000 (seven hundred fifty thousand dollars) to Peninsula Open Space Trust (POST) for acquisition of the 490-acre Mount Madonna County Park Area property (Santa Clara County Assessor’s Parcel Numbers 756-42-001, 756-47-006, 756-47-007, 756-48-013, and 756-48-011) , more particularly described in Exhibit 1, attached to the accompanying staff recommendation, for the purposes of preserving open space, scenic resources, plant and wildlife communities, and other natural resources; protecting watersheds; and enabling natural resource-compatible public access. This authorization is subject to the following conditions: 1. Prior to disbursement of any Conservancy funds, POST shall submit for review and approval by the Executive Officer of the Conservancy (“the Executive Officer”): a. All relevant acquisition documents including but not limited to the appraisal, environmental assessments, agreement of purchase and sale, easements, escrow Page 1 of 8 MOUNT MADONNA COUNTY PARK AREA PROPERTY ACQUISITION instructions, title reports and documents of title necessary for the purchase of the property. b. Evidence that there is legal access to the property from a public road. c. Evidence that POST possesses sufficient funds to complete the acquisition. d. A stewardship plan, budget, and schedule describing the actions that POST will take, prior to the anticipated future transfer of the property to Santa Clara County Parks and Recreation Department (County Parks), to monitor and maintain existing natural resources on the property, any natural resource-compatible public access, and any grazing proposed for the property. e. A plan showing the design and placement of signs acknowledging Conservancy funding for the acquisition. 2. POST shall pay no more than fair market value for the property, as established in an appraisal approved by the Executive Officer. 3. POST shall permanently dedicate the property for the purposes of preserving open space, scenic resources, plant and wildlife communities, and other natural resources; protecting watersheds, and enabling natural resource-compatible public access in an instrument acceptable to the Executive Officer, consistent with Public Resources Code Section 31116(b). 4. POST shall submit a written monitoring report to the Executive Officer before close of escrow for the property acquisition, and at five-year intervals thereafter for as long as it holds a property interest. The report shall state the existing property conditions with respect to preserving open space, scenic resources, plant and wildlife communities, and other natural resources, protecting watersheds, and enabling natural resource-compatible public access.” Staff further recommends that the Conservancy adopt the following findings: “Based on the accompanying staff report and attached exhibits, the State Coastal Conservancy hereby finds that: 1. The proposed project is consistent with the current Project Selection Criteria and Guidelines. 2. The proposed authorization is consistent with the purposes and objectives of Chapter 4.5 of Division 21 of the Public Resources Code, regarding the San Francisco Bay Area Conservancy Program. 3. POST is a nonprofit organization existing under the provisions of Section 501(c)(3) of the United States Internal Revenue Code, and whose purposes are consistent with Division 21 of the Public Resources Code.” PROJECT SUMMARY: Staff is recommending that the Conservancy authorize the disbursement of up to $750,000 (seven hundred fifty thousand dollars) to POST for acquisition of the 490-acre Mount Madonna County Park Area property in Santa Clara County (the Property) (see Exhibit 1), for the purposes of preserving open space, scenic resources, plant and wildlife communities, and other natural Page 2 of 8 MOUNT MADONNA COUNTY PARK AREA PROPERTY ACQUISITION resources; protecting watersheds; and enabling public access that is compatible with those purposes. Acquisition of the Property is a priority for Conservancy assistance because the Property is prominent in a County Scenic Road viewshed, is biologically rich and diverse, and is anticipated to become an important addition to Mount Madonna County Park (County Park)(see Exhibit 1). The Property is located along a proposed north-south corridor within the southern end of the Santa Cruz Mountains that has the potential to link more than 24,000 acres of properties that are already protected, or anticipated for future protection, for wildlife and sensitive habitats. It is located adjacent to the major protected land within that area, the 3,688-acre Mount Madonna County Park. Linking large privately-owned properties in the area such as the Property to protected areas like Mount Madonna County Park will play a critical role in maintaining connectivity for species that require vast home ranges, like mountain lions, especially as the adjacent area continues to face pressures from large-scale residential development. The Property is regionally significant from both a recreational and natural resource standpoint. Its location adjacent to the County Park creates an opportunity to link and expand the recreational trail network. The site possesses an abundance of natural resources, consisting of a mix of montane hardwoods, coast live oak woodlands, redwood/conifer forest and grassland (including serpentine grassland and wildflowers at higher elevations). Of additional importance is the presence of 0.5 miles of Little Arthur Creek, a perennial creek that flows into Uvas Creek and ultimately the Pajaro River and is one of the most productive spawning streams in Santa Clara County for steelhead trout, a federally threatened species. Protection of the Property would protect this habitat, along with other plant and animal species that depend on these lands for survival. The project will help implement open space and watershed protection goals and objectives of the Conservancy’s Strategic Plan, further the Conservancy’s long-standing efforts to assist with open space protection, and implement State and regional plans as follows: Bay Area Conservation Lands Network (CLN; also known as Upland Habitat Goals): The CLN is a science-based assessment tool created by multiple agencies, and used to identify priorities for conservation of large blocks of lands needed to preserve biodiversity in the Bay Area. The Conservancy helped fund creation of the CLN by the Bay Area Open Space Council. Applying the geographic information systems database and analytical tools of the CLN indicates that 477 acres of the Property is designated in the CLN as an area “Essential to Conservation Goals”, which is the highest priority for conservation. Among the vegetation conservation targets that protection of the Property would help accomplish are those for regionally important serpentine hardwoods and montane hardwoods (Exhibit 3). Santa Clara County Countywide Trails Master Plan: This plan identified a 0.5-mile route through the Property that would connect to the trails in Mount Madonna County Park, and ultimately to other regional parkland in the area. Santa Clara Valley Habitat Conservation Plan/Natural Community Conservation Plan (Draft) (HCP/NCCP): The HCP/NCCP is a regional partnership among six local partners and three wildlife agencies that looks at habitat resources on a large scale basis and identifies mitigation measures to protect sensitive habitat, while allowing for orderly development and public agency activities. The HCP, which will be finalized soon, covers approximately 520,000 acres, encompassing all of southern Santa Clara County, including the area where the Property is located. The Property is identified as part of the County’s “Preferred Reserve Strategy” within Page 3 of 8 MOUNT MADONNA COUNTY PARK AREA PROPERTY ACQUISITION the “HCP area” and is noted in the HCP for containing nine to ten habitat types out of the total twenty-one total species covered under the HCP. This project advances the Conservancy’s goals by protecting 490 acres of uplands wildlife habitat, connecting corridors and scenic areas of regional significance. This acquisition is an important step in realizing the vision of a contiguous north-south wildlife corridor and regional trail system within the western hills of Santa Clara County from Coyote Valley to the Pajaro River. Consistent with a signed letter of intent setting forth the agreed upon $3.85 million purchase price and other key terms for this transaction, POST entered into an option agreement with the landowner on June 27, 2012. Under this agreement, POST has two exclusive options, exercised separately, allowing further time to line up funding sources